Newsline - February 25, 2000

NTV on 25 February
broadcast footage acquired from the German television station
N24 showing soldiers loading male corpses from a Russian
military vehicle into a mass grave, Western agencies
reported. The men's ankles were bound with wire, and one of
the corpses had been mutilated, according to AP. Human Rights
Watch reporter Malcolm Hawke told Reuters that the film
footage "looks authentic" and raises "very serious questions
about the treatment of Chechen prisoners of war." But Russian
officials said the film does not substantiate Western
allegations that Russian soldiers massacred Chechen
civilians. Kremlin Chechnya spokesman Sergei Yastrzhembskii
said it is "too early" to draw a conclusion, while Federal
Security Service spokesman Aleksandr Zdanovich claimed the
footage is a "falsification" and that the dead Chechens must
have been killed in battle, Reuters reported. LF

INTERIOR MINISTRY ANTICIPATES ONGOING GUERRILLA ATTACKS

Defense Minister Igor Sergeev said in Moscow on 24 February
that the war in Chechnya must be ended before the spring
thaw, but denied that there is a specific deadline for doing
so, according to Interfax. But Deputy Interior Minister
Colonel-General Igor Zubov warned on 24 February that even
after the military operation in Chechnya is over, gunmen will
be hiding among the peaceful population ready to destabilize
the situation, ITAR-TASS reported. In the most recent of a
series of such hit-and-run attacks, unidentified fighters
opened fire on a Russian sentry post in Nozhai-Yurt and the
local administration building in Urus-Martan. LF

PUTIN AGAIN AFFIRMS READINESS FOR CHECHEN TALKS

Speaking to
Radio Baltika in St. Petersburg on 24 February, acting
Russian President Vladimir Putin again said there are
unspecified "forces" in Chechnya with whom peace talks could
be held but that such talks are possible only after the
successful completion of the "anti-terrorist" campaign,
Russian media reported. He added that it will be possible to
find a suitable model that would guarantee Chechnya broad
autonomy within the Russian Federation, according to
"Nezavisimaya gazeta" of 25 February. LF

BORDER GUARDS DENY BABITSKII WAS IN GEORGIA

The Georgian
Border Guard Service on 24 February rejected unconfirmed
Russian media reports that missing RFE/RL journalist Andrei
Babitskii was sighted in the Georgian village of Shatili,
close to the Georgian-Chechen border, on 19 February as
disinformation intended to discredit Georgia, Caucasus Press
reported. LF

U.S. SENATOR CALLS FOR LINKING SUMMIT WITH BABITISKII AFFAIR

U.S. Senator (Republican) Jesse Helms, chairman of the U.S.
Senate Foreign Relations Committee, called on U.S. President
Bill Clinton on 24 February not to hold a summit with acting
President Putin until a full account of the whereabouts of
RFE/RL reporter Babitskii has been given, AP reported. Helms
said "it is premature to consider summit meetings at a time
when the Russian government remains contemptuously dismissive
of Babitskii and our concerns about his safety, not to
mention the international community's call for a just peace
in Chechnya." Helms added that although no summit has been
announced, it is common knowledge in both countries' capitals
that one is being planned soon. JAC

U.S. EXPORT-IMPORT BANK TO RESUME LENDING TO RUSSIA?

Michael
Carter, the World Bank's country director for Russia,
announced on 24 February that the bank is likely to delay the
next installment of its coal sector loan for at least two
months, AP reported. Carter was quoted as saying that "the
main issue at this point is simply that there are a
substantial number of steps which remain to be taken to meet
the conditions of that tranche." Meanwhile, Aleksandr
Livshits, presidential envoy to the Group of Seven countries,
said he expects the U.S. Export-Import Bank to unblock loan
guarantees for Russia in the coming months, Interfax reported
on 24 February. That bank delayed approving $500 million in
credits for the Tyumen Oil company last December (see "RFE/RL
Newsline," 17 December 1999). At the time, some Russian
officials linked the decision with U.S. displeasure over
Russia's military campaign in Chechnya. JAC

GROUPS, COMPANIES COMPETE TO SUPPORT PUTIN...

"Vedomosti"
reported on 24 February that the campaign to elect acting
President Putin has attracted an array of Russian companies.
In addition to Gazprom and Unified Energy Systems, the board
of LUKoil and its trade unions released a statement urging
"shareholders, employees, and executives" to support Putin,
while Surgutneftegaz dispatched one of its vice presidents to
head the St. Petersburg initiative group for Putin. The
newspaper added that some political consultants believe that
a list exists of 25 "lucky" companies that will be "allowed"
to sponsor the elections. "Vremya MN" reported the same day
that competing groups have formed in regions such as Tula,
Krasnodar, and Sakhalin Oblasts as well as Chukotka
Autonomous Okrug; these groups are vying to become the
official branch of Unity. In Samara Oblast, a group headed by
Samara Mayor Georgii Limanskii and another one headed by
AutoVAZ head Vladimir Kadannikov have both formed Unity
branches (see "RFE/RL Newsline," 23 February 2000). JAC

...AS ANALYST PREDICTS SECOND ROUND

Center for Strategic
Analysis head Dmitrii Olshanskii told reporters on 24
February that acting President Putin's support is below 50
percent "according to our latest research," Reuters reported.
Olshanskii said that while some polls may show Putin with
more than 60 percent of voters' support, not all Putin's
supporters will show up to vote on 26 March. Therefore, a
second round will be held in which the two leading vote-
getters will take part. Olshanskii also predicted that
Yabloko leader Grigorii Yavlinskii and Kemerovo Governor Aman
Tuleev might get 10 and 8 percent respectively. In a press
conference the same day, Liberal Democratic Party of Russia
leader Vladimir Zhirinovskii said that if the Supreme Court
does not overturn the Central Election Commission's decision
banning him from elections, then about 70 percent of his
supporters will vote for Communist Party leader Gennadii
Zyuganov, "Kommersant-Daily" reported on 25 February. JAC

PUTIN AGAIN CALLS FOR RULE OF LAW IN RUSSIA...

In an open
letter to voters published by "Izvestiya" on 25 February,
Acting President Putin called for strengthening order in
Russia and fighting growing crime. He said that one of
Russia's biggest problems is the "absence of solid and
universally recognized rules." He continued "with a weak
government, the individual is defenseless and not free. The
stronger the government, the stronger personal freedom....
Democracy is a dictatorship of the law." He added that the
"state must begin with itself. It must establish equal rules
and abide by them." Among Russia's priorities are fighting
poverty and defending Russia's new market economy against
criminal and bureaucratic "encroachments." JAC

...EMERGES AS DEFENDER OF PRESS FREEDOM?

Speaking to Radio
Baltika on 24 February after attending the funeral of former
St. Petersburg Mayor Anatolii Sobchak on 24 February (see
below), acting President Putin said that "the ordinary man"
can be protected from "witch-hunting" and "persecution" only
by protecting the principles of democracy that Sobchak
himself had sought to defend. In particular, Putin noted that
"one of the major institutions of human rights are free mass
media. They have to stand in the way of those officials who
abuse office and follow selfish political aims," ITAR-TASS
reported. JC

PRESIDENTIAL CANDIDATES' AIR TIME DISTRIBUTED

The Central
Election Commission on 24 February announced its distribution
of free television air time among presidential candidates.
According to "The Moscow Times" on 25 February, half of the
free air time is devoted to debates, and if candidates choose
not to participate, then they lose that time. According to
"Kommersant-Daily" the same day, Putin's staff reports that
their candidate is still considering whether to participate
in the debates. JAC

PUTIN SAYS SOBCHAK HOUNDED TO DEATH...

Acting President Putin
joined tens of thousands of people who gathered in St.
Petersburg on 24 February to pay their last respects to
former Mayor Anatolii Sobchak, a leader of the reform
movement that began in the late 1980s. Sobchak, who died of a
heart attack last weekend in Kaliningrad Oblast, was buried
at the Aleksandr Nevsky Monastery, alongside slain reformist
State Duma deputy Galina Starovoitova, according to the
"Moscow Times." Speaking to Radio Baltika, Putin commented
that Sobchak "did not die, he fell victim to persecution,"
alluding to the corruption charges that were brought against
the former mayor after he left office. The funeral took place
under tight security following an alleged threat by Chechens
to kill Putin. JC

...AS YAKOVLEV STAYS AWAY FROM FUNERAL

Many other
representatives of Russia's political elite attended
Sobchak's funeral, including United Energy Systems head
Anatolii Chubais, Union of Rightist Forces co-leader Irina
Khakamada, Yabloko leader Yavlinskii, former Premier Sergei
Stepashin, and businessman and State Duma deputy Boris
Berezovskii. Also present was Sergei Stankevich, a former
aide to President Boris Yeltsin. This was Stankevich's first
trip to Russia since fleeing to Poland in 1995 amid
corruption allegations. St. Petersburg Governor Vladimir
Yakovlev, however, opted not to attend the funeral, following
a public warning by Sobchak's widow to stay away (see "RFE/RL
Newsline," 23 February 2000). Yakovlev, who did not attend
Starovoitova's funeral either, told ITAR-TASS on 24 February
he had taken the decision not to "cause embarrassment." The
same day, he met with Putin behind closed doors in St.
Petersburg to discuss "economic matters," according to the
governor's spokesman. JC

IVANOV SAYS WEST GIVES UNFAIR PRESS TO RUSSIA, BELARUS,
YUGOSLAVIA

Russian Foreign Minister Igor Ivanov said in
Minsk on 24 February that the West is not objective in its
coverage of Russia and Belarus, Reuters reported. "What we
want above all from international organizations is greater
objectivity on events in Belarus, in the Balkans, and in
Russia," he commented, adding that Western countries should
recognize the "policy of openness and clarity pursued by
Russia and Belarus." With regard to Chechnya, Ivanov
commented that 90 percent of Chechen territory has been
"freed from terrorists" and life is "returning to normal in
the republic." "One should talk about this," he argued, "not
about civilian deaths." JC

SECURITY COUNCIL HEAD WARNS RUSSIA MAY WITHDRAW PEACEKEEPERS
FROM KOSOVA

Sergei Ivanov has renewed threats that Moscow
may withdraw its peacekeepers from Kosova following the
recent escalation of tensions between ethnic Albanians and
Serbs in the divided town of Mitrovica, Interfax reported on
24 February. In an official statement to the Canadian
ambassador, Ivanov said that developments in the Yugoslav
province and the failure to implement UN resolutions "may
oblige Russia's leadership to re-examine whether the presence
of its peacekeeping contingent in the region is appropriate."
JC

TRADE MINISTER WARNS GOVERNMENT NOT TO RELY ON ENERGY, METALS
EXPORTS...

Trade Minister Mikhail Fradkov called on the
government to pay more attention to long-range planning
regarding Russian exports, "Rossiiskaya gazeta" reported on
25 February. According to Fradkov, "the possibilities for the
further development of Russian natural resource exports [such
as oil, gas, ferrous, and non-ferrous metals] have
practically been exhausted." Therefore, he argued that "the
government of the Russian Federation must work out a series
of measures aimed at supporting Russian exporters" so that
their competitiveness can be increased. JAC

...AS GOVERNMENT APPROVES NEW EXPORT DUTY

The previous day,
Deputy Prime Minister Viktor Khristenko told reporters that
the government has approved a 33 percent hike in the export
duty on crude oil, increasing the duty from 15 euros ($15)
per metric ton to 20 euros. The higher duty will not become
effective until 15 April. The Fuel Ministry also plans to
reintroduce export quotas on gasoline and diesel fuel in the
second quarter, Deputy Fuel Minister Yevgenii Morozov told
reporters on 25 February. Ten percent of gasoline production
and 5 percent of diesel fuel production will be held back.
JAC

WHEAT IMPORTS SOARED LAST YEAR

Russia imported four times as
much wheat in 1999 as during the previous year, the State
Statistics Committee reported on 24 February. According to
the committee, Russia imported 4.566 million metric tons in
1999, compared with 1.104 million metric tons in 1998. Acting
President Putin announced earlier that Moscow may stop
purchasing grain on international markets even though its own
domestic production is unlikely to meet demand, particularly
in the area of fodder and forage crops (see "RFE/RL
Newsline," 28 January 2000). JAC

BEREZOVSKII HAILS POSITIVE DEVELOPMENTS IN RUSSIA

Speaking
at a Defender of the Fatherland Day ceremony on 23 February
in Cherkassk, business magnate Boris Berezovskii said that
"For the first time in 15 years, power in Russia is being
consolidated." He emphasized that "a new stage of creating a
strong state has begun. Russia will have neither a strong
army nor a strong society without consolidating power."
According to "Nezavisimaya gazeta" on 24 February,
Berezovskii rejected some Russia political figures' claim
that totalitarianism is being revived in Russia. JAC

FORMER KARABAKH DEFENSE MINISTER DENIES PRESIDENTIAL
AMBITIONS

In a statement issued in Stepanakert on 24
February, General Samvel Babayan denied that he intends to
run for president of the unrecognized Nagorno-Karabakh
Republic, RFE/RL's Yerevan bureau reported. He added that he
has not yet decided to participate in the enclave's upcoming
parliamentary elections. Babayan's brother Karen, who is
mayor of Stepanakert, had predicted in a recent interview
with the Armenian newspaper "Aravot" that Samvel will one day
become president of Nagorno-Karabakh. Samvel Babayan was
dismissed as defense minister last summer following a
standoff with Karabakh President Arkadii Ghukasian. He was
also ousted as commander in chief of the Nagorno-Karabakh
Defense Army in December (see "RFE/RL Newsline," 3 August and
17 December 1999). LF

Journalists from several Azerbaijani newspapers
said at a press briefing in Baku on 24 February that they are
being subjected to pressure and harassment by the Azerbaijani
Ministry of Justice. They said that pressure is part of an
attempt to limit media coverage of the trial of participants
in what the Azerbaijani authorities claim was a mutiny at a
high security jail near Baku in January 1999, Turan reported.
That trial opened in Baku last month (see "RFE/RL Newsline,"
26 January 2000). The journalists attribute the authorities'
reluctance to allow journalists to attend the trial to
discrepancies between the official version of what happened
and claims by prisoners' relatives that the alleged mutiny
was staged in order to facilitate the murder of former
General Vahid Musaev. Musaev was sentenced on charges of
planning in 1995 to assassinate President Heidar Aliev. He
was one of 11 prisoners shot dead by guards during the
alleged insurrection (see "RFE/RL Newsline," 11 January
1999). LF

OIL EXPORTS FROM AZERBAIJAN VIA RUSSIA RESUMED

The
Azerbaijan International Operating Company (AIOC), the only
international consortium currently exporting oil from the
Azerbaijani section of the Caspian, has resumed transporting
crude through the Baku-Novorossiisk pipeline, Caucasus Press
reported on 24 February. Azerbaijan's state oil company
SOCAR, which previously used that pipeline, stopped doing so
last month in order to conserve domestic crude for use for
heating purposes (see "RFE/RL Newsline," 13 January 2000).
The AIOC is now exporting 12,000 tons of oil daily via
Novorossiisk in addition to the oil it exports via Georgia's
Black Sea port of Supsa. LF

RUSSIA WARNS AZERBAIJAN OVER ALLEGED CHECHEN PRESENCE...

The
Russian Foreign Ministry issued a statement on 24 February
expressing the hope that "the territory of Azerbaijan will
not be used for anti-Russian purposes," ITAR-TASS reported.
The statement was pegged to media reports that injured
Chechen fighters are undergoing medical treatment in Baku
hospitals. Interfax in early January quoted the Chechen
representation in Baku as saying that some 100 civilians
injured during Russian bombing raids in Chechnya were
receiving medical treatment in Azerbaijan. LF

...AS TURKEY REFUSES TO ALLOW CHECHENS TO CROSS BORDER FROM
GEORGIA

Turkish Prime Minister Bulent Ecevit said on 24
February that Ankara will provide humanitarian aid for
Chechen refugees in Georgia but will not allow an estimated
300 Chechens now stranded at the Georgian-Turkish border to
enter Turkey, Reuters and Caucasus Press reported. Georgian
Interior Minister Kakha Targamadze, who is currently visiting
Ankara, told the Anatolia News Agency that Turkey refuses to
admit the Chechens as they do not have valid passports or
identification. LF

BRITISH FOREIGN MINISTER VISITS GEORGIA

Visiting Tbilisi on
25 February, Robin Cook met with Georgian President Eduard
Shevardnadze, Minister of State Vazha Lortkipanidze, Foreign
Minister Irakli Menagharishvili, and parliamentary speaker
Zurab Zhvania, ITAR-TASS reported. Cook pledged his support
for Georgia's independence, territorial integrity, and
integration into Euro-Atlantic structures, including NATO,
according to AP. He and Shevardnadze focused on the war in
Chechnya and the situation on the Chechen sector of the
Russian-Georgian border. They also discussed the prospects
for a peaceful solution of the Abkhaz conflict. LF

CORRECTION:

Based on an erroneous Caucasus Press dispatch,
"RFE/RL Newsline" on 24 February incorrectly reported that
USAID and the International Committee of the Red Cross have
signed an agreement on aid for Georgian displaced persons.
That agreement was in fact signed by USAID and the
International Federation of the Red Cross and Red Crescent
Societies.

KAZAKHSTAN'S PRESIDENT REAFFIRMS COMMITMENT TO
DEMOCRATIZATION...

Addressing a session of the OSCE Permanent
Council in Vienna on 24 February, Nursultan Nazarbaev
acknowledged the "universal character" of the criteria
applied by the OSCE to compliance with democratic norms, but
at the same time he appealed for "a good understanding" of
the situation in Central Asia, Interfax reported. Nazarbaev
argued that "it is impossible for legal innovations to bridge
the gap between new institutions and old models of behavior
in a short time." The OSCE criticized both the presidential
and the parliamentary elections in Kazakhstan last year as
failing to meet international standards. Nazarbaev rejected
that criticism, saying that Kazakhstan will choose its own
approach and timeframe for gradual democratization. LF

...ENUMERATES REGIONAL SECURITY CONCERNS

Nazarbaev also told
the OSCE that it is imperative to prevent the "Balkanization"
of Central Asia, Interfax reported. He said the region's
enormous energy potential can be successfully developed only
if existing problems between regional states are resolved.
Nazarbaev said one of the main medium-term problems facing
the Central Asian states is international terrorism and
extremism stemming from Afghanistan, and he appealed for the
assistance of the international community and the OSCE in
combating those threats. It is unclear whether Nazarbaev
addressed the possible interaction between the OSCE and the
Asian regional security forum, which Kazakhstan advocates
(see "RFE/RL Newsline," 15 September 1999). LF

KYRGYZSTAN SCHEDULES PARLIAMENTARY RUNOFFS

A second round of
voting has been scheduled for 12 March for all but three of
the 90 single-mandate seats in the upper and lower chambers
of the new Kyrgyz parliament, RFE/RL's Bishkek bureau
reported on 24 February citing the Central Electoral
Commission. Several opposition candidates have said they will
appeal to the prosecutor-general against what they term
falsification and procedural violations that deprived them of
a first-round win. Also on 24 February, the CEC issued
revised results of the party list voting, raising from five
to six the number of political parties that surmounted the 5
percent minimum required for parliamentary representation.
The sixth party is the pro-presidential My Country. LF

TURKEY, U.S. SEEK TO PERSUADE TURKMENISTAN OF PIPELINE
BENEFITS

Turkey's Deputy Foreign Minister Mithat Balkan and
U.S. special adviser for Caspian energy issues John Wolf held
talks in Ashgabat on 24 February with Turkmenistan's
President Saparmurat Niyazov, Interfax reported. Balkan
delivered personal assurances to Niyazov from Turkish
President Suleyman Demirel that Ankara is committed to the
swift construction of the planned Trans-Caspian pipeline to
export Turkmen gas to Turkey. Niyazov had said last week that
that project would not be viable if Azerbaijan insists on the
use of 50 percent of the pipeline's throughput capacity (see
"RFE/RL Newsline," 22 February 2000). In Moscow, Russian Fuel
and Energy Minister Viktor Kalyuzhnyi told journalists on 24
February that he supports the bid by Gazprom to conclude a
rival agreement under which Turkmenistan would export much of
its natural gas via Russia, ITAR-TASS reported. LF

BELARUS, RUSSIA SIGN FOREIGN-POLICY AGREEMENT

Belarusian
Foreign Minister Ural Latypau and his Russian counterpart,
Igor Ivanov, signed a foreign policy cooperation agreement in
Minsk on 24 February, Belapan reported. Under the agreement,
the two countries will coordinate their foreign policies in
2000 and 2001. They also pledged to cooperate more closely in
international organizations such as the UN and the OSCE.
Ivanov said both countries will continue to work toward
"common approaches." He said Russia and Belarus are
"sovereign independent states that have made a voluntary
decision to form a union state." VG

IVANOV, LUKASHENKA CRITICIZE WESTERN PORTRAYAL OF BELARUS

Ivanov also criticized the West for being unfair in its
portrayal of events in Belarus (see Part 1). The same day,
Belarusian President Alyaksandr Lukashenka said the U.S. is
being "misinformed" about Belarus. He added that the Russian-
Belarusian union is based on equal rights. "I have enough
healthy nationalism in me to secure Belarus's national
interests," he said. VG

PROMINENT BELARUSIANS ASK RUSSIA FOR HELP IN FINDING MISSING
POLITICIANS

A group of 100 prominent public figures in
Belarus have sent a note to acting Russian President Vladimir
Putin asking him to "use all opportunities and resources" to
help them find out what happened to two opposition
politicians who disappeared last year, Belapan reported on 24
February. The appeal, which was signed by artists, writers,
and politicians, said Russia could help find the opposition
politicians Viktar Hanchar and Yury Zakharanka. In other
news, the Belarusian Justice Ministry re-registered the
Belarusian Popular Front (BPF) "Adradzhenne" movement on 23
February, Belapan reported the next day. VG

UKRAINE TAKES PRIVATIZATION STEPS

The Ukrainian State
Property Fund on 24 February announced that shares in nine
electricity companies will be traded on various stock
exchanges next month, the "Ukrainian Eastern Economist"
reported on 25 February. The move comes after the parliament
passed in its first reading of a privatization program for
2000, which affects more than 800 companies, AP reported on
23 February. However, factions in the parliament have pledged
to push for amendments to the privatization bill in its
second reading, according to "The Moscow Times." Also, the
Russian government has expressed an interest in acquiring
some of the companies slated for privatization in lieu of
money transfers to pay Ukraine's energy debts (see "RFE/RL
Newsline," 24 February 2000). VG

CHECHEN GROUP LAUNCHES PUBLICATION IN UKRAINE

A Chechen
group in Odessa has started publishing a newsletter covering
the war in Chechnya, AP reported on 24 February. The
publication will be distributed to diplomatic missions in
Ukraine. Russian authorities have reportedly put pressure on
Ukraine to shut down the publication. VG

PARTY CALLS FOR MORE RUSSIAN SCHOOLS IN UKRAINE

The Slavonic
Party in Ukraine has called on the authorities in Moscow and
Kyiv to protect Russian-language speakers in Ukraine, ITAR-
TASS reported on 23 February. The party called for more
Russian-language schools in Ukraine and said the country's
language policy is based on "Russophobia." It also said that
Russian-language speakers constitute a majority in Ukraine
and that 90 percent of the population prefers to speak
Russian. VG

ESTONIAN PRESIDENT BEMOANS LACK OF MORALS

In his annual
Independence Day speech, Lennart Meri on 24 February
criticized the lack of morals in Estonia and stressed that
"the spirit of capitalism must be supported by Protestant
ethics." Meri focused on the need for the country to be able
to defend itself, voicing strong support for university
students to complete their military service. He also stressed
the need to reform the education and justice systems. And he
expressed regret at "the rebirth of Russian chauvinism and
readiness to sacrifice basic human values in the name of
power." MH

LATVIAN JUSTICE MINISTER ENDS HUNGER STRIKE

After eight days
of fasting, Valdis Birkavs ended his hunger strike on 24
February, LETA reported. Birkavs launched that strike to
protest allegations that he and other government officials
were involved in a pedophilia scandal (see "RFE/RL Newsline,"
18 February 2000). He said his goal was to have all the
evidence presented to law enforcement officials, adding that,
as justice minister, he has full trust in those officials.
Birkavs's decision to end his strike follows an ad hoc
parliamentary commission's decision to submit its evidence to
the Bureau for the Protection of the Constitution. The
parliament also agreed to extend the commission's activity
until 13 April. During his hunger strike, Birkavs developed
mild arrhythmia. MH

POLAND APOLOGIZES TO RUSSIA OVER 'INFRINGEMENTS' ON
CONSULATE

The Polish Foreign Ministry on 24 February
apologized to Russia for "infringements" on the Russian
consulate building in Poznan on 23 February by a group of
demonstrators protesting Russia's military intervention in
Chechnya, PAP reported (see "RFE/RL Newsline," 24 February
2000). The ministry said the incident is being investigated
by police. Also on 24 February, the deputy mayor of Poznan
apologized for the incident to the Russian vice consul in the
city. The Russian Foreign Ministry had expressed outrage at
the incident and accused the Polish authorities of doing
nothing to stop it. The ministry said the lack of action on
the part of the Polish authorities represented "de facto
support for extremists." VG

POLISH PRESIDENT CRITICIZES SALE OF BANK

Aleksander
Kwasniewski on 24 February criticized the procedure according
to which BIG Bank Gdanski was sold, PAP reported. The
president stressed that his complaint is related to the way
the bank was sold and not to the bank itself, adding that "I
have full confidence in the professionalism of this bank." VG

Responding to a government request, Chamber of
Deputies Chairman and Civic Democratic Party Chairman Vaclav
Klaus has declared a "parliamentary state of emergency,"
which will remain in force until 3 March, CTK reported on 24
February. The government made that request in order to pass
legislation prohibiting exports related to Iran's Bushehr
atomic power plant (see "RFE/RL Newsline," 24 February 2000).
Under the chamber's regulations, such a state of emergency
may be declared if basic rights and freedoms or the country's
security are threatened or if there is a danger of
considerable economic damage. Klaus criticized the
government, saying its move was "rash" and noting that
everyone, including members of the government, long knew that
a deal with Iran was in the offing, He also said the company
that was to have supplied ventilation equipment to Iran must
be compensated. MS

...DENIES HIS DEPUTY'S THREATS

Also on 23 February, Klaus
said the ODS has not decided whether to support or reject the
government's draft budget. He added that that Ivan Langer,
ODS deputy chairman, was expressing his "personal views" when
he said the party will not support the bill unless it is
preceded by the planned cabinet reshuffle (see "RFE/RL
Newsline," 24 February 2000). MS

ORTHODOX JEWS PROTEST IN PRAGUE

A group of Orthodox rabbis
blocked one of Prague's main roads on 24 February to protest
a Czech insurance company's decision not to grant permission
to re-bury the remains of some 120 Jews unearthed during
construction works at the site of a 13th-century Jewish
cemetery, CTK and Reuters reported. The rabbis, mostly from
abroad, said the agreement reached with the authorities and
with Ceska Pojistovna, which is building a garage and a
parking lot on the site, provided for the remains to be re-
buried in encased concrete. A spokesman for the company said
the rabbis were denied permission to enter the site for
safety reasons, adding that the demonstration was "organized
from abroad" and was a "pressure tactic" to "strengthen [the
Jews'] negotiating position." MS

EU SAYS HUNGARY SLOW TO REPORT CYANIDE SPILL

EU Environment
Commissioner Margot Wallstrom said on 24 February that
Hungary was slow to inform the EU about the full extent of
the cyanide leak that has affected the Tisza and Danube
rivers, Hungarian media reported. Wallstrom said the incident
would not delay Hungary's EU accession but added that the
grace period given to Hungary to meet EU environment criteria
must be kept to a minimum. She criticized the fact that the
European Commission still has not been officially informed of
the damage, and she noted that during her visit to Hungary
and Romania last week, local residents also complained about
a lack of information. The Hungarian Foreign Ministry denied
the claim, saying that EU officials in Brussels were informed
on 10 February. MSZ

NATO TO DECIDE ON INCREASING KFOR TROOPS

The North Atlantic
Council, NATO's policy-making body, will hold an emergency
meeting on 25 February to discuss the situation in the
Kosovar city of Mitrovica and decide on a request to increase
KFOR troops in the province, Reuters reported. General Wesley
Clark, NATO's supreme commander in Europe, requested the
previous day that 2,000 troops be added to KFOR and sent to
Mitrovica to help the peacekeepers there contain the violence
that has led to several deaths. France has said it will
contribute 700 to the extra contingent. U.S. President Bill
Clinton supports the increase, but Washington has not yet
decided if it will augment KFOR. The U.S. currently has 5,500
troops in Kosova out of KFOR's total 37,400. The UN,
meanwhile, has announced that it will begin resettling ethnic
Albanians in their former homes in the northern part of the
city, which is controlled by Serbs. PB

MITROVICA REPORTED CALM

Tensions in the violence-torn town
were reported to be diminishing after KFOR troops announced
they had finished conducting weapons searches in residential
areas, Reuters reported on 25 February. In all, some 50 guns,
ammunition, nine hand-grenades, and one rocket-propelled
grenade were confiscated. Yugoslavia accused the West of
fomenting the unrest, with Yugoslav Deputy Premier Nikola
Sainovic saying "the sequence of events clearly showed that
it was a planned and coordinated scenario." Western officials
charged Belgrade the previous day with instigating the
violence (see "RFE/RL Newsline," 24 February 2000). On 24
February, The UN chief in Kosova, Bernard Kouchner, met with
Oliver Ivanovic, the leader of the Serbian community in
Mitrovica. Ivanovic said after the meeting that he is
prepared to talk with the town's ethnic Albanian leaders. PB

RED CROSS SAYS NEARLY 3,000 STILL MISSING IN KOSOVA

The
International Red Cross said on 24 February that 2,987 people
are unaccounted for in Kosova, AP reported. The majority are
ethnic Albanians, but the figure includes some 400 Serbs as
well as Roma. Of the total, 1,875 are reported to be held by
Yugoslav forces. PB

SERBIAN OPPOSITION LEADER CHARGED...

Dusan Mihajlovic, leader
of the opposition New Democracy party, was indicted by the
Belgrade public prosecutor on 24 February on charges of
spreading false information, Beta reported. Mihajlovic said
he "publicly expressed my and my party's political stands and
it's up to the citizens and the general public to judge
them." Mihajlovic faces three years in prison if convicted.
He said he expects to be arrested. PB

...WHILE OPPOSITION-RUN TELEVISION STATION FINED

Studio B TV
was fined some $20,000 on 24 February because a guest on a
talk show criticized a police investigation, AP reported. The
news agency Beta said the fine was imposed because a lawyer
from the opposition Serbian Renewal Movement criticized the
police investigation of a car crash last October that left
four people dead (see "RFE/RL Newsline," 4 October 1999).
Studio B is the official television station of the city of
Belgrade. PB

BOSNIAN SERB LEADER CRITICIZES IDEA OF POWER TRANSFER

Zivko
Radisic, the Serbian member of the presidency of Bosnia-
Herzegovina, said on 24 February that the idea of
cantonization "would completely undermine the Dayton peace
concept" in Bosnia, Radio Bosnia-Herzegovina reported.
Radisic was responding to comments made by several Bosnian-
Croat officials the previous day that they are willing to
transfer powers of the Muslim-Croatian Federation to a
central government. Radisic said he opposes that idea, adding
that if some institutions in the entities that make up the
federation are "not functioning," it does not mean they
should be abolished. The office of the international
community's high representative and the current chairman of
the Bosnian presidency, Alija Izetbegovic, both said the same
day that they support the proposal. Such a change would mean
the abolition of the Muslim-Croatian Federation and the
Republika Srpska, the two entities that make up Bosnia. PB

PETRITSCH MEETS WITH CROATIAN PRESIDENT

Bosnia's High
Representative Wolfgang Petritisch met on 24 February with
Stipe Mesic in Zagreb, Croatian Radio reported. Petritsch
said he stressed the importance of implementing key points of
the 1995 Dayton agreement, particularly the return of
refugees. Petritsch said no changes to the agreement can be
made until Dayton is fully implemented. Mesic stressed his
government's commitment to repatriating the refugees but said
Zagreb will need financial aid for this purpose because
"homes must be repaired and economic resources activated." PB

CROATIAN PARLIAMENT CUTS SALARIES, BUT NOT AS MUCH AS
PROMISED

Croatian deputies voted on 24 February to reduce
their salaries and those of other government officials by
some 27 percent, Croatian Radio reported. The cut was lower
than the 40 percent proposed by the cabinet and promised by
the winning coalition during the election campaign. Deputies
will now receive 12,700 kuna ($1,630) a month--about four
times the average salary in Croatia. The president will
receive some $3,000 per month and ministers $2,000. A labor
union said the parliament's first decision showed
"unbelievable selfishness." PB

MACEDONIAN PRESIDENT DEFENDS ARMY ALERT

Boris Trajkovski
said on 24 February that he was forced to put his armed
forces on higher alert because of "tense movements around
southern Serbia," AFP reported. Trajkovski, who is in Vilnius
on a two-day visit, said Macedonia had to react to changes in
Serbia (see "RFE/RL Newsline," 24 February 2000). PB

SLOVENIAN GOVERNMENT IN DANGER OF LOSING MAJORITY

The 24
February announcement of a merger between the People's Party
and the opposition Christian Democrats is threatening Prime
Minister Janez Drnovsek's coalition government, Radio
Slovenia reported. The People's Party have 19 seats in the
90-seat parliament, and if it went over to the opposition,
the government would have only 30 seats. It has not been
announced when the merger of the two parties will take place.
Some opposition parties, including the Social Democrats, have
said they would support a minority government. PB

ALBANIA, MONTENEGRO REOPEN BORDER CROSSING

Albanian Deputy
Foreign Minister Pellumb Xhufi and his Montenegrin
counterpart, Veselin Sukovic, signed an agreement in Shkoder
on 24 February reopening the only border crossing between the
two countries, at Hani i Hotit--Bozaj, AP reported. Yugoslav
officials closed the crossing three years ago. It was used by
tens of thousands of Kosovar Albanians fleeing Serbian troops
last year. In other news, the World Bank approved a $10
million loan to Tirana for improve the water supply in the
towns of Durres, Fier, Lezhe, and Saranda. PB

ROMANIAN MINISTER 'APOLOGIZES' TO PRESIDENT CONSTANTINESCU

Democratic Party Deputy Chairman Traian Basescu told Antena 1
Television on 24 February that he is "retracting" what he
said about President Emil Constantinescu's alleged
involvement in the resignation of Victor Babiuc from the
Democratic Party. He added, however, that he continues to
believe Constantinescu was involved. Basescu also commented
that he should not have said that the National Liberal Party
(PNL) had "stolen" the Senate's chairmanship from the
Democrats, but rather should have said the post was "taken"
from his party, RFE/RL's Bucharest bureau reported. The PNL
commented earlier that it would not accept Babiuc's
replacement as defense minister until Basescu had apologized.
Tension between the Democrats and the PNL continues to mount
after PNL National Council Chairman Nicolae Manolescu said on
national television on 24 February that the coalition could
survive without the Democrats and "it might be better if they
left it." MS

MAVERICK ROMANIAN SENATOR JOINS OPPOSITION PARTY

George
Pruteanu, who was expelled from the National Peasant Party
Christian Democratic (PNTCD) in March 1998 for his opposition
to improving the education rights of the Hungarian minority,
said on 24 February he has joined the opposition Party of
Social Democracy in Romania. Also on 24 February, the PNTCD
suffered yet another defection when deputy Lia Galic resigned
from its ranks. And former Interior Minister Gavril Dejeu
said he is resigning all his positions in the PNTCD but will
remain a party member. MS

TIMISOARA JEWISH COMMUNITY PROTESTS AGAINST ANTI-SEMITIC
GRAFFITI

Rabbi Ernst Neumann of Timisoara on 24 February
urged the town's local authorities to take legal action
against unidentified individuals who have begun daubing anti-
Semitic graffiti and swastikas on city walls and trams over
the past month, AP reported. He said he believed this
development should be seen against the background of Joerg
Haider's success in the Austrian elections. MS

GAZPROM HALTS GAS DELIVERIES TO MOLDOVA

Gazprom on 25
February made good its threat to cut gas deliveries to
Moldova because of that country's failure to pay its debt
accrued since the beginning of this year (see "RFE/RL
Newsline," 23 February 2000), Infotag and ITAR-TASS reported.
On 24 February, the Moldovan government had urged the
population to "stay calm" and pay all utilities bills. MS

BULGARIAN PRESIDENT ASKS GHADDAFI TO INTERVENE IN TRIAL

Petar Stoyanov on 24 February asked his Libyan counterpart,
Muammar Ghaddafi, to intervene on behalf of the six
Bulgarians facing the death penalty in Libya (see "RFE/RL
Newsline," 24 February 2000), BTA reported. Stoyanov offered
condolences for the death of children infected with the HIV
virus but said he cannot believe his countrymen are guilty of
having deliberately "caused such a tragedy." He asked
Ghaddafi to "use his influence" to have the 28 February trial
postponed to allow Bulgarian lawyers to familiarize
themselves with the case and defend the accused. Reuters
cited Justice Minister Teodossyi Simeonov as saying he and
Prosecutor-General Nikola Filichev will fly to Libya to offer
legal assistance to the accused. MS

BULGARIA, ROMANIA AGREE ON LOCATION OF NEW DANUBE BRIDGE

Experts representing Bulgaria and Romania agreed in Brussels
on 23 February that the new bridge over the River Danube will
be constructed between Vidin and Calafat. This is the
proposal that Bulgaria has favored since talks began. Sofia
will cover all the costs of the project, Petko Tabakov,
deputy transportation and communications minister, told
Bulgarian Radio, according to BTA. Speaking in Vidin one day
earlier, President Petar Stoyanov said that "many more
bridges" must be built over the river to promote the two
countries' bid to become part of European and NATO
structures. MS

CROATIA'S NEW LEADERS LOOK TO FIGHT CORRUPTION AND CRONYISM

By Andrej Krickovic

Less that a month has passed since Prime Minister Ivica
Racan's government took office. The ministers are already
living up to their promises to fight corruption and put an
end to the system of cronyism that characterized the rule of
the late President Franjo Tudjman and his Croatian Democratic
Community (HDZ).

Just hours after the new ministers took their oaths,
police arrested outgoing Minister of Tourism Ivan Herak on
embezzlement charges. A week later, police arrested Croatian
businessman Miroslav Kutle, the country's most-famous
"tycoon"--a term Croats have adopted to describe the class of
newly rich entrepreneurs politically connected to the former
regime. In the eyes of many Croats, Kutle is a symbol of the
"robber-baron" style of privatization that has left the
economy in ruins.

is accused of enticing officials at the zdistribution
company Tisak to embezzle more than $6 million from the
company. Tisak holds a virtual monopoly on print media
distribution in Croatia, and with more than $500,000 in gross
sales daily, it is one of the country's few cash-cows. Before
Kutle bought into the company five years ago, Tisak posted
revenues of $2.5 million. Today, the company faces bankruptcy
and $30 million in debts. Most of this money was either
sucked out through embezzlement scams or is debt that Tisak
has had to take over for loans that it backed for Kutle's
companies and on which those companies later defaulted.

This is only the tip of the iceberg. In its heyday,
Kutle's holding company Globus Group owned a controlling
interest in more than 176 companies, and his business empire
was estimated to be worth more than $500 million. Since then,
millions of dollars have disappeared from firms owned by
Globus Group, and most of those firms face bankruptcy today.
Globus Group itself is nearly $500 million in debt.

Kutle's exploits would have been impossible without the
help and protection of high-ranking government officials. The
party and state leadership directly promoted the rise of
Kutle and others like him. In fact, they made this a part of
the official HDZ practice. Tudjman believed that the
country's wealth should be concentrated in the hands of 100
families politically loyal to his party.

Kutle and other "tycoons" used their political
connections and membership in the HDZ to acquire shares in
state-owned companies. In many cases, these purchases of
shares were covered by loans from banks, privatization funds,
and other financial institutions that were also in HDZ hands.

In return, the tycoons helped to fill ruling party
coffers. They also did much of the HDZ's dirty work. During
the early 1990s, "Slobodna Dalmacija" was one of the most
important voices of opposition and hence an irritation to
Tudjman's regime. Under the HDZ's direction, Kutle acquired a
controlling interest in the paper. Independent journalists
and editors were quickly forced to leave, and "Slobodna
Dalmacija" became a regime mouthpiece almost overnight. The
party also helped Kutle acquire a controlling interest in
Tisak in order to keep the distribution of print media in
party hands.

These policies, which wreaked havoc on the country's
economy, prompted the new government to consider carrying out
a revision of the entire privatization process. The tycoons'
irresponsible lending policies also led to a banking crisis
last year that caused the collapse of a dozen banks.
Professor Vladimir Veselica of Zagreb University estimates
that nearly $7 billion have been illegally transferred out of
the country since 1990. Most experts agree that there is very
little chance that even a fraction of these funds will be
recovered.

During the election campaign, the new government
promised to clean up the Augean stables left behind by the
HDZ. It will be interesting to see whether the new
authorities will be willing to prosecute Kutle's political
sponsors in addition to the tycoon himself. For his part,
Kutle has claimed that he was carrying out the orders of
higher authorities. His testimony may implicate several
highly-placed officials from the former government, including
former Prime Minister Zlatko Matesa, former Interior Minister
Ivan Penic, and Ivic Pasalic, who was the late president's
domestic-policy adviser and is the current vice president of
the parliament.

But it will be difficult for the new authorities to
prosecute these people. Many of them enjoy immunity because
they are members of the parliament. They will also argue that
they are being prosecuted for political reasons.

In fact, the new government, which faces a host of
pressing economic and social problems, may not want that
challenge. Some observers believe the new authorities will be
satisfied with Kutle's head and that they will delay or even
forgo prosecuting these cases in the interest of social peace
and political cohesion.

But in the final analysis, the new government may have
no choice but to investigate and prosecute. If the
authorities are truly committed to establishing the rule of
law and ending the system of cronyism that has impoverished
the country, they will have to put political considerations
aside and pursue the Kutle affair and similar cases--no
matter where the trail of guilt may lead.
The author is Zagreb-based writer on Balkan affairs.